Core views:
Achieved high growth in performance in '22, and revenue from overseas operations achieved breakthrough growth. The company released its annual report for '22. The company achieved revenue of 547 million yuan in 2022 (YOY +43.0%), and its international (non-Chinese) business revenue was RMB 21.9 million, an increase of 3.492% over the previous year. ; Gross margin was 71.8 pct, down 6.1 pct from the previous year; adjusted net profit was 131 million yuan (YOY +38.9%). This year's revenue came mainly from hemorrhagic stroke products (YOY +40%), atherosclerotic stenosis products (YOY +31.6%), acute ischemic stroke products, and pathway products (YOY +69.7%).
Core products and new products go hand in hand, contributing to increased revenue. (1) Major new products launched in recent years (including NUMEN detachable embolic spring rings, Bridge vertebral artery rapamycin targeted elution stent systems, etc.) accelerated tendering and rapid revenue release; (2) Products with leading market share (including Tubbridge blood flow guided dense network stents and Asahi series neurovascular guides, etc.) maintained a good growth trend by integrating channel resources and continuing to develop sinking markets; (3) A number of newly approved products (including Neurohawk intracranial embolization stents, Dier's intracranial embolization stent, etc.) Catheter for expansion of the sac, etc.) Begin Commercialization.
Grassroots markets are gradually being consolidated, and collection promotes rapid volume release. By the end of 2022, the products had been clinically used in about 2,600 hospitals across the country, covering more than 1,400 level-III hospitals and the top 100 hospitals in all China's national stroke centers. The NUMEN spring ring successfully won the bid, achieved rapid volume release, and its market share climbed by more than 5%.
Profit forecasts and investment recommendations. The company's EPS for 22-24 is expected to be $0.28, 0.39, and $54 million, respectively. Taking into account the company's industry position and business growth, the company's corresponding reasonable value was maintained at HK$21.66 per share to maintain the “buy” rating.
Risk warning. Collection risks; sales promotion falls short of expectations; market competition intensifies.